Your investment choices
When paying in Special Employer Contributions (SpECs) or Additional Voluntary Contributions (AVCs) you have a choice of investment options.
You can choose either:
- LifePath Capital – the investments move from equities, commercial property, commodities and bonds to cash as you approach retirement – all you need to do is say what age you want to retire at; or
- Self-select – pick and mix your investments from a range made available to you.
You may not invest in LifePath Capital and Self-select funds at the same time. The information provided here does not constitute investment advice. If you require this you will need to contact an Independent Financial Adviser.
A break down of your options
Note: Aegon have been selected by the Lilly Plan Trustee to manage your SpECs/AVCs options.
LifePath Capital
LifePath automatically switches you out of a mix of growth assets into bonds and cash on a gradual basis before switching everything into cash as you approach retirement.
Aegon will change your investments gradually over time.
Note: Aegon will review and update the allocations from time to time. Please check the Aegon website.
LifePath Capital glide path
Self Select
If you choose the Self Select option, you can choose from the below funds:
| Fund | Description | How will this perform? |
|---|---|---|
| Equity Fund – Global | Invests in shares of companies listed on the UK and overseas stock markets | With an equity fund you may see high returns but may also experience significant losses
Over time returns from equity investing should be higher than from other investments as you are taking more risk |
| Equity Fund – UK | Invests in shares of companies listed on the UK stock market | |
| Ethical Global Equity Fund | Invests to replicate the performance of the FTSE 4 Good Developed Index. | |
| Market Advantage | A broadly diversified growth fund | Designed to deliver returns equivalent to a portfolio holding 60% of global equities, and 40% of global bonds (approximately equivalent to cash + 3.5% per annum), but with 40% less risk. This fund aims to actively manage the potential effects of extreme conditions |
| Gilt Fund | Invests in fixed income securities issued by the UK Government | Returns will most likely be lower over the long term than for equities as there is not so much risk. Gilts may go up and down in value, but not as much as equities |
| Cash | Invests in high quality money market instruments to earn a short term rate of interest | This fund provides far greater security for members’ investments and generates some returns but will not increase in value significantly over time |
You can choose to invest in any of the funds and may invest in more than one fund.
Your choices should reflect your attitude to risk. This may be influenced by the number of years you have until retirement and any other retirement savings you may have.
You should review your choices regularly.
Please remember that:
- Past performance is not necessarily a guide to the future.
- The value of investments may go down as well as up and you may not get back the amount you invest.
- Although the Trustee has taken great care in the design of the SpECs and AVCs schemes, it cannot be held responsible for any poor investment performance or future corporate developments.
- LifePath works toward a specified retirement date, so if you change your retirement plans you must update your target retirement date or your investments in LifePath Capital will not match your plans.
- Neither the Trustee nor anyone working for Lilly may provide financial advice.
- Saving for your retirement should be considered as part of your overall financial planning. You may wish to consult an Independent Financial Advisor if you have any questions about whether the investment options offered are right for you.
This information is intended as an explanatory guide for members and gives only an outline for the provisions of SpECs/AVCs arrangements – it is not a legal document. It does not, therefore, cover all the circumstances which can arise in individual cases, and does not grant (or take away) the right to any benefit. This information is prepared based on tax and pensions law as it currently stands. This, of course, is subject to change.
All the benefits outlined on this page are subject to the Trust Deed and Rules, including the power to amend or terminate SpECs at any point, and the restrictions imposed by HM Revenue & Customs. If there is any conflict between this leaflet and the Trust Deed and Rules, the latter will take precedence.
The Trustee reviews the performance of Aegon on a regular basis and may, from time to time, make changes to the range of funds offered to you. If the range of funds is changed and the fund you are invested in will no longer be offered, the Trustee will have power to move your existing investments into a replacement from the new range that appears to them to be more suitable, although you be informed of any such switch.
Risk Warnings
This risk warning is issued by Aegon who are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is intended for Lilly Plan members only. The value of your investment (which may trade in limited markets) may go down as well as up, and you may not get back the full amount invested. All performance figures shown are gross of fees. Past performance is not necessarily a guide to the future and cannot provide a guarantee of the future returns of a fund. Taxation levels, bases and reliefs can change. Certain information in this leaflet may be taken from external sources which we consider reliable, although we cannot guarantee its accuracy. Any opinions contained herein, which reflect our judgement at this date, are subject to change.
Contact Details
Your SpECs and AVC's are invested by Aegon. You can contact them if you have questions on the funds.